A crypto analyst has suggested that Bitcoin’s failure to break above higher resistance levels could result in a “double-top price pattern,” potentially leading to a significant decline to $50,000. Markus Thielen, founder of 10x Research, explained that Bitcoin is currently following a double-top pattern and is testing its support level. This pattern occurs when the price reaches two similar peaks with a slight dip in between, remaining above a common line known as the “neckline.” If the price breaks below the neckline, it could potentially fall by the same distance as the peaks and the neckline. Thielen stated that this formation could see a drop to $50,000 or even $45,000. He also mentioned that range trading is a complex phase with false breakouts. Despite the potential positive impact of the U.S. elections and the Consumer Price Index later this year, the price could still experience a steeper correction.
Speculation about Bitcoin’s price has been ongoing since the halving event on April 20, which reduced Bitcoin miner block rewards by 50%. Crypto trader Jelle noted that Bitcoin’s price action is similar to the 2016 halving cycle and is currently fluctuating around the previous cycle highs. Jelle also mentioned that there is a lot of fear, uncertainty, and doubt (fud) being offloaded at current prices, which is part of the shakeout effects. On the other hand, crypto trader Rekt Capital believes there is considerable potential for further upward movement in the short term and suggests that the recent drop in Bitcoin’s price below $60,000 gives buyers an opportunity to buy more before Bitcoin enters a parabolic uptrend.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and consider the risks involved before making any investment or trading decisions.